IANA reports “surge” in domestic container volumes

IANA said that domestic intermodal’s strong pace was bolstered by a steep rise in diesel prices that likely made it more cost-effective for shippers to shift freight off the highway.
By Patrick Burnson, Executive Editor
August 10, 2011 - LM Editorial

A report issued by Intermodal Association of North America this week shows that domestic and international intermodal volumes posted solid gains in Q2 2011.

IANA’s “Intermodal Market Trends & Statistics Report” noted that domestic container volume grew 9.0 percent year-over-year – a stronger pace than during the previous two individual quarters. This rate of increase is especially impressive considering that the highest gain recorded (16.4 percent) was posted in Q2 2010.

Although domestic containers recorded significant increases, trailer volumes had more modest gains, rising 4.6 percent over 2010 levels – a slightly slower pace than in the previous quarters that likely represents a continued equipment shift toward domestic containers.

IANA said that domestic intermodal’s strong pace was bolstered by a steep rise in diesel prices that likely made it more cost-effective for shippers to shift freight off the highway.

Donald Pisano, chairman of the National Industrial Transportation League’s Ocean Transportation Committee, and chairman of the Traffic and Warehouse Committee at the Green Coffee Association, told LM that the trend to move cargo via intermodal is growing.

For a variety of reasons, this is gaining traction, he said.

As with other industry leaders, he also said it will have an impact on which seaports prosper in the future.

International intermodal volumes during the quarter increased 5.4 percent year-over-year. While this is the slowest rate of international growth since late 2009, IANA noted that previous quarters benefited from weak comparisons. International shipments also would likely have been higher were it not for the disasters in Japan that reduced the volume of Japanese imports, said IANA.

While the rate of intermodal growth slowed from the first quarter to the second quarter, it still remains in-line with many industry analyst estimates of 6-8 percent year-over-year expansion, said IANA spokesmen.



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Working with research partner, The Economist Intelligence Unit, the IBM Institute for Business Value surveyed 1,023 global procurement executives from 41 countries in North America, Europe and Asia.

U.S. Carloads were down 7.8 percent annually at 259,544, and intermodal volume was off 15.7 percent for the week ending February 21 at 213,617 containers and trailers.

The Department of Transportation’s Bureau of Transportation Logistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in December 2014 was up 5.4 percent annually at $95.8 billion. This marks the 11th straight month of annual increases, according to BTS officials.

While the volume decline was steep, there was numerous reasons behind it, including terminal congestion, protracted contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union, and other supply chain-related issues, according to POLA officials.

Truckload rates for the month of January, which measures truckload linehaul rates paid during the month, saw a 7.9 percent annual hike, and intermodal rates dropped 0.3 percent compared to January 2014, which the report pointed out marks the first annual intermodal pricing decline since December 2013.

Article Topics

News · 3PL · Trucking · Railroad · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA